grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Then a three-day grace period was implemented, expanded to 17 days for the 2020 election, dialed back to the current seven days and made permanent. —Susan Shelley, Oc Register, 17 Jan. 2026

Once the 30-day grace period has passed, the government orders the defaulted borrower’s employer to withhold a portion of their worker’s paycheck until the borrower gets out of default or until the loan is paid off. —Max Klaver, Miami Herald, 16 Jan. 2026

During the grace period, no late fees will be charged from water usage during the outage period. —Gillian Stawiszynski, Cincinnati Enquirer, 16 Jan. 2026

But according to Shark Tank star Kevin O’Leary, that grace period is officially over. —Preston Fore, Fortune, 16 Jan. 2026

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace